When asked what funds the government will use to cover the budget deficit instead of revenues from privatization of Bashneft company the minister said:

"We see that the share of foreign investors on the (Russian) stock market is growing, we see that they actively participate in the privatization deals, such as the sale of Alrosa and also in placement of corporate bonds. Therefore, I am sure, that Russia’s foreign currency bonds will be in great demand."

He said that Russia still has an option to issue bonds on foreign market.

"Under the law on the budget we still can borrow $1.250 bln on the foreign market - we may use this tool," the official said.

Ulyukayev said earlier that the Russian government intended to sell 50.08% of Bashneft shares before the end of 2016. Different options of the deal are being considered, in particular the sale of company’s shares on the exchange or their divestment to a strategic investor.

Bashneft oil company operates in more than 20 regions of Russia and abroad. The Federal Property Management Agency owns 50 plus 1 share in the company’s share capital; the republic of Bashkortostan holds 25% plus one share. Bashneft’s shares are traded on the Moscow Exchange.